The rural economy is an example of an agrarian economy. Although farming and agriculture are some of the most important primary activities, the problem lies in the fact that they share in the GDP of the agriculture sector is on a constant decline. At the same time, about two-thirds of India’s population depends on agriculture. As a result, productivity is not up to the mark. Moreover, public investment declined since 1991 coupled with a lack of adequate infrastructure, credit, transport, unemployment, etc.
Henceforth the agricultural output has grown at only 3.2% during 2007- 2011. All these factors have been denting the process of development. Therefore there is a need to focus on rural development and not just urban development.